Apple accuses Psystar of hiding behind bankruptcy

Not quite content to just let Psystar sit in bankruptcy, Apple has filed a motion to have its case against Psystar continue and claims the unauthorized Mac clone maker is using its impoverished state as a shield against having to account for its supposedly illegal activity.

The filing, submitted this week in a Florida Southern District Bankruptcy Court, directly asserts that Psystar's bankruptcy was conveniently timed to "insulate" the small PC assembler with a stay of proceedings before it would have to explain its inner workings in a deposition and in the midst of a discovery phase where it had reportedly been asked to produce phantom evidence about its finances. Allowing the stay would let Psystar continue to sell its clones uninterrupted regardless of whether or not the act is illegal, Apple says.

The Cupertino, California firm goes so far as to draw parallels between Psystar and the fate of infamous software house SCO Group. Known for using lawsuits against Linux-dependent companies over UNIX rights disputes as part of its business model in later years, it's linked to Psystar through its approach to bankruptcy: when it lost its lawsuit against Novell and was ordered to pay money on UNIX licensing, SCO purportedly used bankruptcy and the resulting stay as a defensive measure to fend off the requests for money. Novell eventually had the stay lifted — a precedent which Apple is keen to take advantage of in its own case.

Moreover, Apple argues that allowing its lawsuit to proceed would be a simple practical matter. Since Psystar's business is built around selling Mac clones, it can't exit bankruptcy properly only to risk being found to have violated a valid Mac OS X license agreement; it would just shut down again. Sorting out the legality of the clone producer's current business would mean it could try reorganization under an "alternative business model" that would keep it in the clear if and when bankruptcy ends.

Psystar hasn't publicly responded to the motion but, in the meantime, can't entirely escape Apple's demands in court. It now lists Apple as a creditor that it owes $75,000 for "Litigation Pending." But whether this is to cover an unspecified legal cost, purchases, or something else entirely is just as much of an unknown as whether Psystar will have shelter under its insolvency for much longer.

Sounds like Apple is really wants to tighten the noose. Regardless what Psystar fanboys think or whine about, I hope that noose tightens up, skin turns blue and a double-knot made out of it. I really want to know what/who is backing Psystar.

Nothing would make me feel better than watch what is basically a thief crash and burn. I hope this doesn't turn into a years-long SCO fiasco.

I wonder if there's an implied danger to Apple if Psystar was allowed to exit bankruptcy doing the same thing they're currently being sued for. It would mean that a judge had already implicitly said that what they were doing was legal enough that they can keep doing it after reorganizing. Of course, one would think that any bankruptcy judge would examine Psystar's planned post-bankruptcy business model and see that if they plan to keep selling computers with questionable legality that its in the best interest of both parties to settle the matter now by allowing the suit to proceed.

If you don't want your OS pirated, you have to tie it to hardware somehow (and not make it a pain for users).

They know this, but are trying to play 'whack a mole' and are losing fast, the clones are mushrooming all around the world at a even faster pace.

Unless this is all part of a plan, a plan to kill their own hardware sales that is.

Blame Apple for the misdeeds of another entity? Psystar should be made an example just so that a precedent can be made. Steal another company's IP and you will be made to pay for your crime.

That alone won't prevent outfits to shout out their crusade against companies like Apple and "stick it to the man". Even if Apple wins here in the U.S., it still won't prevent others in other countries from claiming they are immune from whatever happens in the U.S.

So perhaps with the introduction of Snow Leopard, Apple will introduce some kind of feature that will lock out invalid installs. How they will do it is unknown. If they are up to something, of course they will not advertise it until someone tries to do an illegal install.

As usual, it always comes down to a handful of idiots that ruin it for the rest of the group. Psystar is looking to make a quick buck off of another company's work and screw what it may do to the rest of the community. Absolutely selfish bastards.

Blame Apple for the misdeeds of another entity? Psystar should be made an example just so that a precedent can be made. Steal another company's IP and you will be made to pay for your crime.

That alone won't prevent outfits to shout out their crusade against companies like Apple and "stick it to the man". Even if Apple wins here in the U.S., it still won't prevent others in other countries from claiming they are immune from whatever happens in the U.S.

So perhaps with the introduction of Snow Leopard, Apple will introduce some kind of feature that will lock out invalid installs. How they will do it is unknown. If they are up to something, of course they will not advertise it until someone tries to do an illegal install.

As usual, it always comes down to a handful of idiots that ruin it for the rest of the group. Psystar is looking to make a quick buck off of another company's work and screw what it may do to the rest of the community. Absolutely selfish bastards.

Well, it seems to be getting harder and harder. Tiger is more widely cracked and supported than Leopard was on PC. I'm assuming SL will be even harder to maintain than Leopard is. Not saying its impossible or can't be done, its just takes a more advanced user.